How To Save Money on Monthly Expenses

When you are shopping for the perfect pair of shoes, you will look high and low for the best deal.  You will go to at least 3 different stores to compare prices, check out those same stores online, check Amazon and possibly Ebay before making a decision. Finally, when you feel you are confident that you are getting a pretty good deal, you will finally bite the bullet and buy. Imagine, all of this prep work went into saving $10-$15! Why not put in the same effort or less to make a major impact on your monthly budget? Let’s talk about how to save money on those monthly bills.

You could be wasting hundreds of dollars every month by not shopping around for monthly expenses such as:

• Cable
• Internet
• Cell Phone Plans
• Car Insurance
• Homeowner’s Insurance
• Renter’s Insurance
• Home alarm systems

Let’s dig deeper into each of these services to see how you can cut the fat and save money in your budget by cutting those monthly bills.

Cable

You really still have cable in 2021? Okay, I get it. NFL Pass and HBO’s Insecure (shout out to Yvonne Orji). However with so many different streaming services, there may be a better way.

Take an inventory of which shows or networks are really important to you. Do a little research to see if you can get those networks as a stand alone streaming service. If they don’t have it already, they will soon. As of this writing, Discovery Plus is one of the newest streaming services for those who are hooked on home renovation and cooking show for $7/month ad free. That is a far cry from the $70/month for a cable package if that is all you watch. It may be time to cut the cord!

Okay, so you may not be ready for that step just yet however no fear. You can still save a few dollars. Most companies have incentives to get new customers to sign up with their service.  This might be a special rate for a set time period or free merchandise.  They then count on these same customers to renew year after years while their rates increase as well.  

What many people don’t know is that many of of these same companies have a customer retention program that allows you to get some of the same special deals as you did as a new customer.  However you will only get these department if you are calling to cancel your service.  They will do whatever it takes to keep you. I used to work in a retention department many years ago, so I know this first hand.

Now don’t just call and say I am going to cancel so you can get a new deal. Actually take the time to shop other providers. Know your options, what you are willing to accept and be ready to walk away. 

Internet

Internet service is a lot like cable service, except you really do need it to live life. What you may not need is the ultrasonic, super high speed, galactic package that is half of your paycheck monthly. Every Internet Service Provider will try to upsell you your speed, especially now that most of us are using our home wi-fi to do just about everything from work to Zoom baby showers.

If you find that your wi-fi is lagging, don’t automatically assume that is the speed it the problem. Ask yourself a few simple questions like:

• How far is my router from my working space?
• Are there lots of walls between me and the router?
• How strong is the wifi card in my computer?

You may find that a simple amplifier or wifi extender will do the trick. There are lots of total home wifi systems that “wake up” the dead zones in your home that don’t require Hypersonic Space Boy Zoom speed internet at over $100 per month.

Cell Phones

I remember when having a cell phone was a luxury. My mother’s first cell phone was actually a car phone mounted in the car with a cord. We were so cool! Now having a cell phone is as natural as drinking water out of a bottle. (I also remember when that was something that we didn’t think would catch on.)

There are so many options and so many plans that if you don’t have to spend a ton for this service. The first trick to this is to tell yourself this entire sentence….NO!

• No, I don’t need the newest iPhone or 5G phone as soon as it is released.
• No, I don’t need a new phone every year. There is nothing wrong with my current phone.
• No, I don’t need unlimited 5G with music, 2 streaming services and international calling just in case we go out of the country. (The world is locked down anyway.)
• No, I don’t have to go a big name carrier just because it sounds good.

Now that we have gotten over ourselves. Let’s think about this differently.

• Think about purchasing an unlocked phone outright. This will knock $10 – $40 per phone off your monthly bill.
• Research alternative carriers such as Google Fi, Mint Mobile or Straight Talk Wireless. These are especially good if you don’t use a lot of data because you are able to choose you plan based on your habits.
• Take a look at your bill and see if you really need the extras. Cell phone companies have become third party dealers of streaming services and digital storage. When you first sign up for your plan, most of these services are fee or reduced however after the introductory period, the regular monthly cost is tacked on to your bill.

Insurances

Insurance is meant to protect you from catastrophes that can bankrupt you. This mean that most of us are paying premiums to minimize the risk we assume on our homes and vehicles. We typically shop this insurance when we first purchase our home or a car, and then pay it on schedule. What we don’t realize is that every year, our premiums increase, with no additional benefit.

Stop the madness and shop those insurances yearly! Even if you don’t make a change every year, it is good to understand what you are getting for your money and what the competition is offering. If you car is paid off and older, do you really need liability and collision. It may be worth it to just have a liability policy to protect others in case of an accident, however if you total your car, you can use your savings or sinking fund to purchase a new one. This is especially true if the total value of your vehicle is less than the deductible.

Home Alarm Systems

Alarm Systems have come a long way in the last 5 years alone. Back when we purchased our home, you had a fully wired system that required an installer to visit your house and a monthly monitoring fee of somewhere between $25-$50 per month.

There now so many do it yourself wireless systems like Ring or SimpliSafe where you can choose to self-monitor or pay a nominal monthly free for monitoring. You are already paying for the internet, so you might as well get your money’s worth out of it.

  
There are also other things you should occasionally shop to see if you can lower your payments to save money on those monthly bills.  Think in the areas of:

• Student Loans
• Health Insurance
• Life Insurance
• Mortgage rates

These aren’t items that you will want to change every year.  You can only consolidate your student loans once but it may drastically lower your monthly payment.  Open enrollment for your companies health plan may only come around once a year and the plans may only change every few years. As life events occur this need will fluctuate.  

Keep your eye on the mortgage rates.  No one will call you to tell you it is a great time to refinance and get out of that terribly high interest rate. You must be proactive!  This can save you quite a bit of money monthly if done correctly.

You can even think out of the box!  Most people don’t use their home phone but don’t want to rely on cell phones, so why not get rid of Ma Bell and switch to an Internet phone system like Ooma.

There are so many different options in everything now, you should not be stuck paying more than you would like. By saving money on your monthly bills, you can use the extra cushion in your budget on the things you really want.

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